Most people are familiar with the laws that protect 401(k) plans from bankruptcy and insurance that protects individual deposit accounts from bank failures. But are there any federal protections for individual retirement accounts (IRAs)? The short answer is yes.
The Employee Retirement Income Security Act (ERISA) protects 401(k) plans from employer and employee bankruptcies, and the Federal Deposit Insurance Corporation (FDIC) insurance protects up to $250,000 in individual deposit accounts from bank failures.
